Bond

(lat. obligatio - obligation) - a security issued by joint-stock companies and the state as a debt obligation. O. confirms that its owner contributed funds to purchase the security and thus has the right to present it later for payment as a debt obligation, which the organization that issued the O. is obliged to reimburse at the nominal value indicated on it. Such compensation is called redemption. O. differs from a share (see) in that its owner is not a member of a joint-stock company and does not have the right to vote. In addition to the redemption, within the period predetermined when issuing O, the issuer is obliged to pay its owner a fixed percentage of the nominal value of O. or income in the form of winnings or payment of coupons to O. The procedure for paying interest is regulated by the Regulations on the procedure for paying dividends on shares and interest on bonds , approved on January 10, 1992 by the Ministry of Economy and Finance of the Russian Federation. O. are issued with the aim of attracting funds, that is, they represent a form of lending to their issuers by persons who have bought O. O. can be sold and bought at a free exchange rate.